Netflix Misses on Revenue; Shares Fall in After-Hours Trading

Netflix CEO Reed Hastings speaks during the unveiling of the iPhone 4 by Apple CEO Steve Jobs at the Apple Worldwide Developers Conference in San Francisco, California June 7, 2010. Photo: Reuters

Netflix missed on earnings expectations with its second quarter report released Monday after the market closex , and the company's high-flying stock can crashing down, dropping more than eight percent in after-hours trading.

Netflix was down $25 in after-hours trading on the news to $262.01. The stock had closed in trading Monday at $281.53, up $4.95 or 1.79 percent.

Revenue in the three months that ended in June for Netflix rose to $788.6 million, falling below Wall Street's estimates. Analysts on average had been expecting $791.5 million. The company did beat expectations in earnings per share, hitting $1.26 against expectations of $1.11 per share.

In the current quarter, Netflix said it anticipates revenue of $780 million to $805 million, and earnings per share of 72 cents to $1.07 per share. Analysts are expecting $846.5 million and $1.09 in consensus, sending the stock down immediately on the news.